Shawbrook beware

basinger

You’d think that when an account matures and you have decided to renew and what term you require that you would get the higher of the rate offered in the maturity options and the rate at maturity date. Most banks offer this with the associated safety net that lower rates at maturity date won’t have any impact. Not Shawbrook as we have found to our cost. They lock you into the rate per the maturity option process, even if their rates have since risen. I just consider this to be poor practice and not the behaviour of a bank that I would wish to continue to use. Be warned.  

refluxer

Are you sure that most banks would automatically put you on the higher rate ? The only one I've personally come across is Ford Money with their 'Best rate guarantee', so I'm not so sure.

Is it a fixed rate bond or a fixed rate cash ISA ? If it's an ISA and you're still within 14 days of your application date, then you could message Shawbrook and ask to be placed on the higher rate. Another forumite was able to do this successfully with their 3 year fixed rate cash ISA recently...

https://forums.moneysavingexpert.com/discussion/comment/81251629/#Comment_81251629

If it's a fixed rate bond, then you would need to see if there is a 14 day cooling-off period in order to be able to do the same with that type of account.

VNX

basinger said:

You’d think that when an account matures and you have decided to renew and what term you require that you would get the higher of the rate offered in the maturity options and the rate at maturity date. Most banks offer this with the associated safety net that lower rates at maturity date won’t have any impact. Not Shawbrook as we have found to our cost. They lock you into the rate per the maturity option process, even if their rates have since risen. I just consider this to be poor practice and not the behaviour of a bank that I would wish to continue to use. Be warned.  

If within 14 days ask them to move it to the higher rate 

Sea_Shell

I've just been caught out by their maturity rules, I think.

I had an account mature on 29th March, and as I was happy to let this sit for a couple of days, as I wanted to fund my linked account on or after the 1st, and I thought it matured into a easy access maturity account.

But no, it appears I have to still tell them what I want to do with the money, and it's NOT directly easy access.   

The email was a little misleading when it said if I do nothing...

"we’ll move your balance to a Matured Funds Account earning 0.10% Gross/AER. You can move your money from this account at any time."

What it doesn't say is that YOU can't do it, without asking THEM to do it, it seems!!! 

What a palaver!

VNX

Giving a bank your maturity instructions seems pretty clear to me.

Bit like doing nothing when your car insurance renewal comes through really.

The_Green_Hornet

What happens when my account matures?

When your account matures, you can withdraw your money, or put it into a new bond or notice account.

We'll write to you before your account matures and let you know what the options are if you want to transfer to a new product with us.

If you don't tell us what you'd like to do, the balance will remain as 'matured funds' until you let us know what you'd like to do. The account number will remain the same, but your interest rate will change to the 'matured funds' rate. You can withdraw funds from this account at any time, but you cannot deposit additional funds.

Closing or Maturing Your Account | Savings Help | Shawbrook

Rheumatoid

I think what the OP is referring to is that if you give a maturity instruction to transfer into their best rate (which was 4.5% last week) it stays at 4.5% and does not automatically move to any new higher rate (now 4.52%). fortunately I noticed and edited my maturity instruction so I am now maturing into the 4.52%. Not a lot of difference in this case but it could be more significant.

Barkin

The_Green_Hornet said:

What happens when my account matures?

When your account matures, you can withdraw your money, or put it into a new bond or notice account.

We'll write to you before your account matures and let you know what the options are if you want to transfer to a new product with us.

If you don't tell us what you'd like to do, the balance will remain as 'matured funds' until you let us know what you'd like to do. The account number will remain the same, but your interest rate will change to the 'matured funds' rate. You can withdraw funds from this account at any time, but you cannot deposit additional funds.

Closing or Maturing Your Account | Savings Help | Shawbrook

It also says:
---x---

We create your maturity invite a few weeks before your bond is due to mature. That means that we may have new products on offer by the time your bond matures.

You're more than welcome to choose any of our current products, or we'll honour the products on your maturity letter - whichever you prefer.
---x---

So it cuts both ways...

Kim_13

If it were not possible to edit the maturity instruction yourself, then there would be more of an issue - as the higher of the rates in the letter or on maturity is fairly standard. But if there wouldn't be an issue in getting them to honour the letter rate then perhaps setting a diary reminder to set the option the day before would be the best thing do - but that assumes rates don't go up and then down a touch, so that a product available in that period of a few weeks was the best one.

I plan to open an ISA with them in the new tax year and this wouldn't put me off. As with any provider, it's knowing how they do things and then acting accordingly to get the best return.

VNX

Never had an issue with shawbrook on maturity of my previous ISAs 

as long as you instruct them with what you want them to do with your money you are fine. 

HUMBUG

I've raised a separate thread about Shawbrook too so was interested that others are as frustrated as I am when they park your matured fixed rate 'bonds/cash isa's in a holding account with a measly 0.1% .  

In my case , I forgot that I'd linked an old PLUSNET webmail address in MY PROFILE  back in 2010 when I first saved with them. In November 2024  I had to move my faulty broadband service to EE , which meant my old email was closed down. 

So when my CASH ISA's were about to mature in Jan/Feb25 , they were sending 'DO NOT REPLY'  emails to my closed email address , which obviously didn't reach me.  On reviewing my saving accounts I noticed that my 2  cash ISA's had matured and wondered what happened to them . When I logged into my online account I found that both had been parked in an easy access  cash ISA at a 0.1% interest rate . In my case, the CASH ISA amounts were quite large and I've worked out that I have lost potential interest of £666.

It seems they don't contact customers by 'phone/text/post'  if their emails are bounced back to them as 'Undelivered' or 'No Address Found ' .  The fact that they send 'DO NOT REPLY' emails means they do not have a process in place to deal with bounced customer emails.

I was hoping a quick SMS text or phone call informing me their emails were being bounced would have been the customer friendly thing to do. But they have basically profited from my forgetfulness in keeping my email address updated.

I was also looking at Trustpilot reviews to check if others had similar experiences and found this one below which was particularly distasteful .  Therefore , I will close my account with them next year as I don't trust them anymore.

Blatant profiteering on deceased account

My late mother’s Fixed Term Deposit matured a month after she passed away.
Shawbrook then pay a penalistic rate of 0.1% pending further instructions.
Obviously my mother could not give instructions nor would they accept mine without Probate which they are well aware currently takes about 5 months.
Financial loss to the beneficiaries in excess of £1000 due to penalistic interest rate & corporate profiteering.
Very disappointing and leaves a bitter taste. Will never invest with them again.

Thank you for your response. I understand that you cannot act without Probate. My argument is the penalistic 0.1% interest rate whilst holding the monies pending Probate. This rate is entirely within your control.